Apparel retailer Gap Inc. has announced numerous precautionary measures it is taking to bolster its financial flexibility amidst the ongoing Coronavirus pandemic.
These unprecedented times have wreaked havoc on the retail sector and companies are rigidly taking precautionary measures to mitigate the impact and maintain the liquidity and flexibility.
Sonia Syngal, President and CEO, Gap Inc. expressed “We are fortunate to have a senior team of deeply experienced retail leaders who are fully dedicated to managing our response through this challenging moment in time, while continuing to build the future.”
Gap Inc. made a strong entry into 2020. It had declared its first quarter fiscal year dividend of US $ 0.2425 per share to be payable on or after 28 April 2021 to shareholders at the close of business on 7 April 2021 subject to terms and conditions.
Also, owing to the present scenario, it will now assess its quarterly cash dividend policy.
The mitigation measures adopted by the company to cushion the effects of COVID-19 pandemic include drawing down its US $ 500 million credit facility.
Further, the company has suspended current year’s quarterly dividends and reduced capital expenditure by approximately US $ 300 million.
Additionally, Gap is reviewing all its operating expenses to reduce expenditure along with realigning inventory to expected sales trends.